March 2010

KFE BI Service Delivery- Overview

2

KFE REGION

Countries: Austria, Benelux, Denmark, Finland, France, Germany, Greece, Italy, Norway, Portugal, Spain, Sweden, U,K. and Ireland

Input provided by: Rob Andrews, Joern Braetsch, Malcolm Neale, Peter Pieninck, Sabir Ul-haq

March 2010

3

Agenda

1. What reporting tools are being used?2. What are the key sources of information?3. What subject areas being reported against

• Includes a non-SAP BI overview4. What is the lowest level of data granularity in your reports?5. Do key metrics exists for a given region and/or function? If so, please list6. Are there any tools used to capture all of the reports, metrics, definitions in existence?7. Are real-time reports generated?  If yes, do any exist in a BI environment?8. Are any cross region and/or global reports being generated today?9. Number of reports that exist?  Frequency of updates?10. Number of users by process / region / country?11. Do end-users modify and/or write reports today?12. Do multiple languages and/or currency conversions exist?13. How much data is being stored in your reporting environment?14. Is History stored?  If so, how much?15. Highlight specific business processes (if any) that are performed within your reporting environments (i.e.

TPM Planning)16. Are there any master data elements and/or hierarchies that are maintained directly in your reporting

systems today?17. Describe usage of enterprise and/or application portals relative to reporting18. Describe external/ customer access/reporting

1. What reporting tools are being used?

• Currently only Bex via Excel, Web, Portal and Broadcast

• Tests ongoing to connect WebI and Crystal Reports• Plans in place to have BO Explorer in 2011

4

Bex Analyzer

MS-Excel Web Portal Broadcast

5

2. Key sources of information

• RTR/STP – all data comes from SAP ECC & ORBIS (see details by application)– CO-PA– CO-CCA– SAP PS– CO-PC– ORBIS KFE Central & BB (SPUC & TPM)– SAP Purchasing

• STC– Master data from SAP ECC– Transactional data from Siebel

6

2. Key sources of information

• OTC– Master data from SAP ECC– Product Supply

– Stock snapshot, MRP result, boundary calculation, BU planning data, material movements from ECC

– Inventory on batch level from DWMS via B2B->DataStage– LogOps

– ECC– Transports from Inet

– OTC– All from ECC

SAP ECC

RTR

ORBIS

A&C Planning

Transfer Price Planning

A&C Reporting

COGS Reporting

Product Profitability

Customer Profitability

Sales &Distribution

Overheads Reporting

OTC

Customer Service

Reporting

Logistic Operations Reporting

Product Supply Reporting

Material Master Reporting

STP

Procurement Reporting (PICAR)

MaterialsManagement

Purchasing Controlling

BI-IP

SPUC Planning

ProductionPlanning

WarehouseManagement

ProjectsSystem

Financial Closing

FinancialAccounting

3. Subject areas being reported against3. Subject areas being reported against - SAP BI Application Overview- SAP BI Application Overview

STC

Siebel Reporting (SATURN)DE-only

Siebel

SAP-BII-Net

(Transportation Management)

June 2010

InventoryManagement

Top 99 EOC defined

Customers only

8

3. Subject areas being reported against- SAP BI Financial Reporting

Reporting Area

Purpose Source / Target

# Reports

Product Profitability Reporting (ORBIS)

• The main purpose of this reporting area is to act as a feed to ORBIS. ORBIS is the global system used to consolidate and report US GAAP results and plans up to KFT HQ.• The Financial Controllers will be able to use this reporting area to reconcile ORBIS management reports to SAP• Additionally this reporting area allows product margin reporting combining actual and plan data, plus analysis of promo / non-promo activity

Source: SAP CO-PA

Target: ORBIS

10

Overheads Reporting

• Facilitates analysis of overheads taking into account the multiple legal entities in the new Kraft European business model• Actual and Plan reporting but no planning functionality included

Source: SAP CO-CCA

11

Customer Profitability Reporting

• Customer profitability for KFE and sales companies showing revenue & margins by SKU, international customer group and country• Allows central Sales Controlling a combined view of revenue & margins for Pan European customers

Source: SAP CO-PA(Central &

Local Sales)

8

9

3. Subject areas being reported against - SAP BI Financial Reporting

Reporting Area

Purpose Source / Target

# Reports

Advertising & Consumer Reporting

• Facilitates tracking of A&C projects for KFE central, service and sales companies against budgets and spend plans

• Supports drill down detail on A&C projects settled to CO-PA and ORBIS by brand and country to understand full P&L impacts

Source: SAP PS

7

Financial Closing Reports

• Supports the closing process, to reconcile P&L data across the different modules in SAP

• Enables currency analysis for KFE, service and procurement companies

• Provides inventory revaluation and reconciliation to facilitate central ownership principle and related accounting

Source: SAP CO-PA, CO-PCA, FI,

MM

8

COGS Reporting (SPUC Actuals)

• Provides a breakdown of standard COGS by detailed cost element by SKU and originating plant

• Allows full analysis of the variances (Vol. Mix, Price and Usage) Actual vs. Standard, Standard vs. Plan and between Plan versions

• Performs an allocation of variances to SKU needed to support detailed product profitability and for ORBIS feed of actual COGS results

Source:SAP CO-PA, SAP CO-PC

6

10

3. Subject areas being reported against - SAP BI Financial Planning

Reporting Area

Purpose Source / Target

# Reports / Input Sheets

Transfer Price Planning

• Application to calculate two types of TP on Format Flavor Level (Cost Plus/Resale Minus) based on sales and costing data

• Planning and manual Input of Target Margins & Country Specif. Adjustments such as Germany Green Dot, Coffee Tax etc.

• Breakdown to SKU Level for feed into SAP SD pricing conditions

Source: ORBIS

SPUC PlanningTarget: SAP SDORBIS

11

SPUC Planning • Planning of full Standard Product Unit Cost (SPUC) estimates by detailed cost component combining plan input from all plants

• Allows input of planned amounts for other non-manufacturing costs to a SKU level, e.g. coffee tax, Zurich overheads etc

• Facilitates simulation of price changes by ingredient group• Basis for ORBIS Feed for planned COGS by SKU and detailed cost line

Source: SPUC Actuals

Target:Transfer Pricing

ORBISSAP CO-PC

24

A&C Planning • Planning of A&C costs by project line at sub brand level• Basis for ORBIS feed for planned A&C costs

Source: SAP PSTarget:ORBIS

12

Planning functions use SAP BI-IP (Integrated Planning Module)

11

3. Subject areas being reported against - SAP BI Customer Service

Order to Cash (OTC)Customer Service

Purpose Source / Target

Case Fill Rate (CFR) • Key Kraft customer service level KPI. Order vs. delivered (quantity and time)• Measured by country and the accountable BU/Category down to SKU and Customer.

Source: ECC SD

Return - Order Analysis (ROA) • Monitor returns by reason code and document type to show trends and opportunities for corrective actions.

• Secures correct handling of credits regarding returns between KFEU and local selling company

Source: ECC SD

Invoice Control (IC)-Credit/ Debit Memo Analysis

• Monitor returns by reason code and document type Source: ECC SD

Invoice Control - Invoice Accuracy (IC/AC)

• The divided IA/IC KPI measures Kraft ability to invoice our external customers in an accurate way - IA measures the Kraft service level performance in terms of compliance on delivered cases to the trade compared with the customer wishes

Source: ECC SD

Order Shipped Complete (OSC)

• Measure Kraft service level performance on an aggregated EU level, in terms of compliance full orders to the trade compared to our customers wish.

• This is an absolute measure similar to CFR and can be aggregated to all levels of the product hierarchy.

Source: ECC SD

Transportation cost(LogOps)

• Movements of finished goods from KRAFT Factories or External Manufacturers to Distribution centers and outbound to customers

• Analyze related transportation costs with import duties and customs

Source: ECC SD, CO, Inet

Warehousing & Pallet cost(LogOps)

• Any costs generated by the storage of finished goods along with handling costs (taking place in the warehouse)

• costs generated by pallets

Source: ECC IM, CO

SKU De-complexity (Product Portfolio Management)

• Facilitate the de-complexity initiative by delivering adequate information for all goods within Catalyst EU region

• Deliver an adequate database for SKU Budget Planning Process• Enable simulations and in-depth analyses in order to define the de-complexity drivers.

Source: ECC MM,SD

Master data (MD) • Enable quality reporting on all Master data entries in ECC Source: ECC MM

Order/Delivery Analysis • Basic tracking reports for Orders&Deliveries, enabled CS and Sales to monitor order patterns and customer behaviour leading to management actions in order to reduce costs and increase quality in the supply chain.

Source: ECC SD

Cost to Serve • Track logistics costs per customer based on sales order conditions. Source: ECC SD

12

3. Subject areas being reported against - SAP BI Logistic Operations

Reporting Area Purpose Source / Target

Co-Packing Cost & Volume Reporting

• Any Costs linked to the transformation of finished goods that takes place in a 3rd party location or KF plant location.

• Costs and volumes have to be segregated by 3rd party and internal co packing

Source: SAP SD, LES, CO

Warehouse and Truck Performance

• Track the inbound/outbound flow, total volume delivered per customer from DC and total volume delivered per customer directly from our plant buffers including the cost saving for shortening the supply chain, truck utilisation, average pallets, picked volume & volume delivered per delivery

SAP SD, IM

Pallet declaration • Track pallet movements, total volume of pallets delivered per customer, late declarations & out of pool equipment

• Manage operative pallet in- & outbound business, manage short term interventions within pallet management as well as provide base material for invoice evaluation, benchmarking, strategic evaluation of cost and cost impacts, verification/ explanation of cost changes

SAP SD, Inet

Stock projection • Project future stock levels and utilisation risks per warehouse• Manage operative business, manage short term interventions within

warehousing capacity planning as well as provide base material for benchmarking, strategic evaluation of cost and cost impacts, verification/ explanation of cost changes.

SAP IM

13

3. Subject areas being reported against - SAP BI Product SupplyReporting Area Purpose Source / Target

Finished Goods Inventory Coverage (DIFC - Days of Inventory Forward Coverage)

• Shows the number of days it takes the forecast to consume the current finished goods inventory (includes Inventory snapshot)

• Control reports highlighting potential supply issues in the system

Source: SAP MM, SD

Raw & Pack Inventory Coverage

• Similar to finished goods Inventory Coverage but for Raw Material and Packaging Material and WIP consumption

Source: SAP MM, PP

Stock Aging Analysis • Inventory control reporting highlighting potential obsolete stocks or shelf life risks Source: SAP MMEANCOMSAP WM

Inventory Boundary Violations

• Analysis of minimum and maximum boundary violations in volumes, occurrences and percentage

• For all BU/Plant combinations and location and category aggregations.

Source: SAP MM

Inventory Average Analysis • Control Report that allows KFEU to track inventory evolution versus targets• Allows comparison to SCORe replenishment system

Source: SAP MM

Demand Volume Reporting • weekly figures on demand volume in tons• The demand volume consists of forecast + MTO + FOF.

Source: SCORE via SAP

Production Volume and Shipment Compliance

• Analysis the actual production on a weekly basis• Contains frozen and non-frozen planned orders• Analysis the allocation volume per BU to what at the end has actually been shipped

Source: SAP PP

Allocation vs. Actual Shipment

• Analysis the allocation volume per BU to what at the end has actually been shipped Source: SAP SD, LES

Sales Forecasting Accuracy (MAPE) Reporting

• Measure Kraft’s ability to generate correct forecasts compared to actual sales volume Source: SAP SD

14

3. Subject areas being reported against - SAP BI Procurement

Reporting Area Purpose Source / Target

# Reports

Indirect Materials & Services (IM&S) Reporting

• Allows analysis of indirect purchasing spend by supplier, material and group

• Enables price and consolidation opportunities to be identified

• Facilitates compliance with group purchasing policies• Allows tracking of movements on purchase requisitions

and orders

Source:SAP Purchasing

20

Raw & Packaging (R&P) Reporting

• Allows analysis of raw material and packaging spend by supplier, material and group

• Enables price and consolidation opportunities to be identified

• Facilitates compliance with group purchasing policies

Source:SAP Purchasing

5

Country specific Reporting for Sales

Regional Reporting system for Sales

EU Reporting system for CS&L, Finance & Procurement

CUBISGalaxy

SAP-BW SAP-BWEssbase

ORBIS

EU Reporting & Planning system for Finance

Siebel Analytics

Siebel transactional Reporting(Sales figures)

Regional Systems

MARSAXISPCESIRIOG DWHAKTI - ExpressDSS

OSCARAGSAR

SAP-BW is for all Star Countries the Interface platform to ORBIS

On

com

mon

SA

P-BW

pl

atfo

m

BOARD

3. Subject areas being reported againstNon-SAP BI overview

SAP-BW

Consumption Data• POS Data (Agency)• POS Data (Customer)• Promo / Non Promo (Consumption)• Base / Incremental (Consumption)

16

General “Transactional”• Accounts• Orders, Returns & Deliveries• Invoices• Payments• Rebates• Promo / Non Promo (Shipment)• Base / Incremental (Shipment)

Financial Sales Analysis• Plan – Year to Date / Year to Go• Trade Margin• Trade Spend On/Off Invoice• Trade Spend Accruals• Promotion Pre-Evaluation• Promotion Post-Evaluation• Promotion Forecast Accuracy• Customer Profitability

Field Force “Transactional”• Surveys• Retail / Category Audits• Objectives• Secondary Displays• Promo Negotiation / Compliance• Targets• Orders

STC - Sales reporting can be categorized within 4 classifications

3. Subject areas being reported againstNon-SAP BI overview

17

General TransactionalField Force

TransactionalFinancial Sales Analysis Consumption Data

Germany SAP BI / Local SAP BW & G DWH Local SAP BW SAP BI / Essbase / STAR NielsenAustria SAP BI / Local SAP BW & G DWH x SAP BI / Essbase / STAR NielsenSwitzerland SAP BI / Local SAP BW x SAP BI / STAR NielsenTREE SAP BI / Excel x SAP BI / Essbase / STAR Nielsen

France SAP BI / Galaxy Comete SAP BI / Essbase NielsenBelgium SAP BI / DSS Microstrategy Saturn (Analytics) SAP BI / Essbase / DSS Microstrategy NielsenNetherlands SAP BI / DSS Microstrategy Saturn (Analytics) SAP BI / Essbase / DSS Microstrategy Nielsen

Italy SAP BI / Sirio / Galaxy Saturn (Analytics) SAP BI / TDW / Dealman / Sirio NielsenGreece SAP BI / Essbase O4 SAP BI / Essbase / YED / STAR NielsenSpain SAP BI / DSS Microstrategy Nexium SAP BI / Essbase / DSS Microstrategy NielsenPortugal SAP BI / DSS Microstrategy Nexium? SAP BI / Essbase / DSS Microstrategy Nielsen

UK SAP BI / AXIS x PCE / Axis NielsenIreland SAP BI / AXIS SalesPro PCE / Axis Nielsen

Sweden SAP BI / Galaxy Saturn (Analytics) SAP BI / Essbase (SINEPS) Brimstone / NielsenNorway SAP BI / Galaxy Saturn (Analytics) SAP BI / Essbase (SINEPS) Brimstone / NielsenDenmark SAP BI / Galaxy Saturn (Analytics) SAP BI / Essbase (SINEPS) Brimstone / NielsenFinland SAP BI / Galaxy Saturn (Analytics) SAP BI / Essbase (SINEPS) Brimstone / Nielsen

Current HIGH LEVEL Landscape shows a complex picture across Europe

3. Subject areas being reported againstNon-SAP BI overview

18

4. Lowest level of data granularity

Application GranularityProduct & customer profitability CO-PA line items by SKU and customer

sold-toOverheads reporting Cost centre and cost element line items

A&C reporting & planning WBS level 2 line items within A&C projects. Settlements at sub-brand level in EU hierarchy

SPUC reporting & planning SKU and intercompany customerTransfer pricing reporting & planning SKU and intercompany customerPICAR Vendors, materials, buying groups, PO’s,

Req, Inv, RecCustomer Service Document line itemProduct Supply SKU, BU/MULogOps Document level

19

5. Key metrics

Today 2009 2010 2011 2012 End State

1. Foundational repositories created (% data consolidated from disparate sources)

2. Standard SAP BO/ BW Tools utilized (% SAP BO/BW utilized for data access & reporting)

3. Transactional reports created from foundational repository (% reports created from SAP BW)

4. Automated Performance Metric Scorecards (# of scorecards created from SAP BW)

5. Number of users (current vs final)

6. Legacy BI applications retired

Benefits IS Productivity $xx,xxx $xx,xxx $xx,xxx $xx,xxx Kraft Productivity $xx,xxx $xx,xxx $xx,xxx $xx,xxx Kraft Revenue Growthfits $xx,xxx $xx,xxx $xx,xxx $xx,xxx

2.873 8.00036%

3 506%

100%26%

0 40

100%34%

29% 100%29%

100%

34%

26%

100%

20

6. Tools used to capture reporting, metrics,definitions….

• Solution Manager (RDDs, …)• Project Team sites (RDDs,…)• Business Information Dictionary (KPIs,…)• Excel (Metrics)

21

7. Are real time reports generated

• RTR / STP– No real time reports generated– Reports can be run on planning input after process chain

updates during the day• OTC

– No real time reporting– Update of orders, invoices, deliveries every other hour (2h)

• STC (Siebel reporting)– Daily update from Siebel

22

8. Are any cross region and/or global reports being generated today?

• RTR/STP– All data comes from KFE SAP ECC and ORBIS instances– Some cross region sales demand is loaded to SPUC for

intercompany COGS but this is sourced via SAP ECC• OTC

– All data comes from KFE SAP ECC, Manugistics SCORE and DWM systems

– Data for Bahrain and Dubai available, but not active

23

9. Number of reports that exist?  Frequency of updates?

• RTR / STP– All applications are updated daily– Some special processes run at financial period end on a

monthly basis for specific closing processes– Number of standard reports by application area included in

application analysis (previous slides)• OTC/STC

– # of reports: please see overview at the end of the deck– Update of orders, invoices, deliveries every other hour (2h)– Demand planning weekly– All other area daily

24

10. Number of users by process / region / country?

Process Number of usersMTI 570OTC 739RTR 1206STC 455STP 541Total 2901 (users overlapping)

25

11. Do end-users modify and/or write reports today?

• RTR/STP– Key users have access to create their own queries– In practice this is only done by a small number of key users– Creation of new reports is controlled through User Groups in

RTR• OTC/STC

– Key users concept as for RTR. Prerequisite is query designer training.

– Huge number of copies of central reports– Naming conventions and authorization model prevents key

users to modify central reports

26

12. Do multiple languages and/or currency conversions exist?

• Standard language is English (front- and backend)• No translation into local languages• RTR / STP / OTC / STC– Most reports utilise the key currencies available in SAP ECC– The key currencies used are LC (GBP,DKK,NOK,CHF), plus Co

Code / CO Area (EUR) and USD

27

13. How much data is being stored in your reporting environment?

7.6 TB

28

14. Is History stored?  If so, how much?

• RTR / STP– For PICAR there is around 3 years of data in the system– For the RTR areas most were developed for P1E from April

2009 with no historical data loaded• OTC

– DACH area: data since 2005 for pre-P1E applications– P1E wave 1: since April 2009, no history other than for DACH– P1E wave 2 (Greece and Iberia Food): since fiscal year 2010– T4G (Biscuits incl. Iberia): with go Live in June, no history– Update of sales orders 2008 and before disabled

29

15. Highlight specific business processes (if any) that are performed within your reporting environments (i.e. TPM Planning)

Application ProcessProduct and customer profitability Module is used as a reconciliation and feed

to official ORBIS reporting during financial closing

Overheads reporting Module is used to ensure cross controlling area charges are processed correctly during financial closing

A&C module Module is used for planning during major financial planning cycles to input plan data by project / WBS

SPUC / TPM Modules are used for planning during major financial planning cycles to provide planned COGS by SKU and related transfer prices. SPUC is also used to allocate all cost variances to SKU and interco customer during financial closing. TPM is used to calculate cost plus and resale minus transfer prices for load into ECC SD interco billing.

Distributer performance reporting Invoice control of distributer business

30

16. Are there any master data elements and/or hierarchies that are maintained directly in your reporting systems today?

• Area assignment maintained in SAP-BW• RTR/ STP

– All master data and hierarchies used are maintained in SAP ECC

– RTR applications use only the EU Product Hierarchy• OTC

– All master data and hierarchies used are maintained in SAP ECC

– Usage of EU and local product hierarchy

31

17. Describe usage of enterprise and/or application portals relative to reporting

• RTR / STP– At present enterprise / application portals not used– Use of web portal for SPUC / TPM planning is currently in

development for T4G Project• STC

– BW 3.5 role menu in producer portal

32

18. Describe external/ customer access/reporting

• RTR/STP– All applications are used internally only– Access is restricted primarily using SAP ECC characteristics

such as Co Code, Controlling Area etc• OTC/STC

– All applications are used internally only, no external access